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IMF-Backed Policy Targets Low Grid Industry Users with Higher Fixed Charges
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IMF-Backed Policy Targets Low Grid Industry Users with Higher Fixed Charges

Islamabad: The government has shared a new plan with the IMF to raise fixed charges on electricity bills. This punishes industrial users shifting to solar power and under-utilising their sanctioned loads. The two-part industrial tariff policy aims to recover costs from idle capacity payments caused by declining grid demand. Higher grid consumption will lower unit costs, while low usage attracts heavier fixed charges. Power Minister Sardar Awais Laghari recently presented this policy to the IMF. Officials hope it will encourage industries to stay on the national grid longer by making off-grid options less attractive financially. The policy will initially apply to industrial connections before expanding to commercial and residential users. It addresses the rapid migration from the expensive national grid due to high tariffs. Fixed costs currently dominate electricity bills. The new structure spreads these costs over higher sales volumes, potentially reducing per-unit prices and boosting demand by around 1,000 MW in six to 12 months. Examples show extreme cases, like a Karachi industry paying over Rs2,000 per unit due to high fixed charges on minimal consumption. Such bills are expected to rise further under the new rules. The IMF has raised concerns over falling industrial electricity demand. Many industries have adopted solar panels and gas-based generation to cut costs, threatening the financial stability of power distribution companies. Power Division officials confirmed the policy remains optional. Industries using over 50% of their sanctioned load could see tariffs drop to 7-8 US cents per kWh, with further reductions possible at higher utilisation levels. This initiative aims to align tariffs with actual cost structures, benefiting both the government and compliant industries. Final approval and implementation are expected within two months.

Pakistan Maritime Investment Opportunities Attract Major Saudi Interest in Ports and Logistics Sector
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Pakistan Maritime Investment Opportunities Attract Major Saudi Interest in Ports and Logistics Sector

Pakistan Maritime Investment Opportunities have emerged as a major focus of economic diplomacy as the government unveiled a series of ambitious projects to Saudi investors. The move signals a fresh push to transform Pakistan’s ports, shipping industry, logistics network, and blue economy into key drivers of growth while attracting foreign capital. The proposals were presented by Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry during a high-level virtual meeting with Mansour Bin Mohammed Al Saud, Chairman of the Pakistan-Saudi Arabia Joint Business Council. The discussions highlighted Pakistan’s determination to position itself as a strategic maritime hub connecting South Asia, the Middle East, and Central Asia. Pakistan Maritime Investment Opportunities Gain Momentum The meeting brought together key stakeholders from Pakistan’s maritime sector, including chairmen of major ports, senior officials from the Pakistan National Shipping Corporation (PNSC), representatives of the Special Investment Facilitation Council (SIFC), and Pakistan’s ambassador to Saudi Arabia. Officials presented a comprehensive portfolio of projects designed to attract international investors seeking long-term opportunities in infrastructure, logistics, shipping, and coastal development. The minister emphasized that the proposed projects align closely with Saudi Arabia’s Vision 2030 while supporting Pakistan’s economic modernization agenda. He noted that the longstanding relationship between the two countries is evolving into a broader strategic partnership driven by investment and economic cooperation. Karachi Port Emerges as a Major Investment Destination One of the most eye-catching proposals was the development of a Maritime Business District at Karachi Port. According to officials, the project covers approximately 140 acres of prime coastal urban land and has the potential to become a landmark commercial and maritime center. The initiative is expected to attract businesses involved in shipping, logistics, trade facilitation, and maritime services. Saudi investors were also invited to explore opportunities in a marine workshop project and the development of drydock and floating dock facilities at Manora. These projects could significantly enhance Pakistan’s ship repair and maintenance capabilities while creating new revenue streams for the maritime sector. Port Qasim Projects Offer Strategic Growth Potential Port Qasim was presented as another major investment destination with several large-scale infrastructure projects on offer. Authorities highlighted plans for a multipurpose cargo terminal that would improve cargo handling efficiency and support growing trade volumes. Investors were also briefed on an integrated second oil terminal and storage farm project. Port Qasim Authority Chairman Rear Admiral (Retd) Syed Moazzam Ilyas explained that the oil terminal and storage facility would be developed under a Build-Operate-Transfer model, allowing private investors to participate directly in the project’s construction and operation. Another major proposal discussed was the Energy City project, which aims to strengthen Pakistan’s energy logistics and industrial capabilities. Gwadar and Blue Economy Projects Capture Attention Gwadar Port remains central to Pakistan’s long-term maritime ambitions. Officials outlined investment opportunities linked to the port’s expansion and its role as a future regional trade gateway. At the same time, the government promoted opportunities within Pakistan’s growing blue economy sector. These initiatives are designed to unlock economic value from marine resources while encouraging sustainable coastal development. PNSC Expansion and Aqua Research Park Open New Doors The government also invited Saudi investors to participate in the expansion of the Pakistan National Shipping Corporation fleet. Expanding the national carrier could reduce reliance on foreign shipping services and strengthen Pakistan’s maritime trade capacity. Another noteworthy proposal was the establishment of an approximately 100-acre Aqua Research and Technology Park at the Korangi Fish Harbour Authority. The project aims to modernize fisheries, support marine research, encourage technological innovation, and create opportunities for exports and value-added seafood products. A New Chapter in Pakistan-Saudi Economic Cooperation The presentation of these Pakistan Maritime Investment Opportunities reflects a broader effort to attract strategic foreign investment into critical sectors of the economy. From Karachi Port and Port Qasim to Gwadar and the blue economy, Pakistan is positioning its maritime sector as a gateway to regional trade and industrial growth. If Saudi investors move forward with these proposals, the resulting partnerships could reshape Pakistan’s maritime landscape, strengthen bilateral economic ties, and accelerate the country’s journey toward becoming a leading regional logistics and shipping hub.

DIB Pakistan and Pocket Money Partner to Provide Banking for Pakistan’s Freelancers
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DIB Pakistan and Pocket Money Partner to Provide Banking for Pakistan’s Freelancers

Karachi, 3rd Jun 2026: In a landmark move for Pakistan’s digital finance landscape, DIB Pakistan and Pocket Money have formalized a strategic partnership aimed at transforming financial access for the country’s booming creator economy. The signing ceremony, held at DIB Head Office, Karachi, marks a significant step towards building a robust, ethical digital banking ecosystem tailored for Pakistan’s borderless talent. With over 2.37 million registered freelancers, generating an estimated USD 3 billion in annual export revenues, Pakistan ranks among the world’s fastest-growing freelance markets. Yet access to seamless cross-border payments, digital wallets, and formal banking has remained a persistent challenge. This partnership directly addresses that gap by combining DIB Pakistan’s globally trusted banking platform with Pocket Money’s cutting-edge fintech infrastructure to deliver an end-to-end financial solution built for the gig economy. Muhammad Ali Gulfraz, CEO of DIB Pakistan, emphasized the strategic vision: “Pakistan’s freelancers represent an exciting opportunity for export of services. They are part of a rapidly evolving global economy, and they need a banking service that works at the same speed. This partnership ensures smooth, swift and seamless flow of hard-earned funds into the accounts of our freelancers so they can focus on maximising their productivity rather than chasing their payments.” Moe Jangda, Founder & CEO, Pocket Money, added: “Together with DIB Pakistan, we’ve opened up payment channels that were previously fraught with hurdles or outright inaccessible. We’re incredibly excited about what this unlocks for Pakistan’s ambitious talent. Best of all, we’re just getting started.” The partnership will deliver a powerful suite of freelancer-first financial products, including faster inward remittances and payment solutions for users earning through global platforms and digital marketplaces such as Upwork, Fiverr, Toptal, Amazon, eBay, Shopify, Stripe, PayPal, and other international commerce and freelance ecosystems. The offering will also include multi-currency digital wallets for seamless cross-border transactions, as well as financial literacy programs designed to empower Pakistan’s growing digital workforce. Together, DIB Pakistan and Pocket Money are set to redefine digital financial inclusion for Pakistan’s next generation of digital trailblazers, making ethical, borderless banking not just accessible, but the new standard for the global gig economy.

Pakistan Mango Exports Hit by Middle East Crisis as Target Slashed by 30 Percent
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Pakistan Mango Exports Hit by Middle East Crisis as Target Slashed by 30 Percent

Pakistan Mango Exports are entering one of the most challenging seasons in recent years as geopolitical tensions in the Middle East, record-high freight charges, climate-related disruptions, and falling fruit production combine to threaten one of the country’s most valuable agricultural exports. The export season officially begins on June 1, but industry leaders are already warning that the sector could suffer substantial losses. Exporters have revised their export target downward by nearly 30 percent, reflecting growing concerns over market access, transportation costs, and declining crop yields. Pakistan Mango Exports Target Cut Amid Mounting Pressures The Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA) has reduced its export target from 110,000 tons last year to just 80,000 tons this season. According to PFVA Patron-in-Chief Waheed Ahmed, exporters are facing an unprecedented combination of challenges that threaten the industry’s profitability and international competitiveness. The reduction is expected to have a direct impact on foreign exchange earnings. Pakistan earned approximately $110 million from mango exports last season. This year, export revenues are expected to fall sharply to between $75 million and $80 million. For an industry that plays a critical role in Pakistan’s agricultural exports, the decline raises serious concerns about future growth prospects. Middle East Crisis Sends Freight Costs Soaring The escalating crisis in the Middle East has emerged as the biggest threat to Pakistan Mango Exports this year. The Gulf region accounts for nearly 35 percent of Pakistan’s mango exports, making it the country’s largest overseas market. However, growing regional instability has severely disrupted shipping routes and increased transportation expenses. Sea freight rates have surged dramatically. Exporters who paid between $1,200 and $1,400 per container last season are now facing charges as high as $6,000 to $7,000 per container. Air freight costs have also skyrocketed. Shipping mangoes by air previously cost between 70 and 90 cents per kilogram. Those rates have now climbed to almost $2 per kilogram, making exports significantly less profitable. These rising logistics costs are placing enormous pressure on exporters already struggling with higher production and operational expenses. Strong Rupee and Rising Fuel Costs Create Double Burden The challenges facing Pakistan Mango Exports extend beyond international shipping disruptions. Rising domestic fuel prices have increased transportation costs from orchards to packing houses and ports. At the same time, a relatively stronger Pakistani rupee has reduced export returns when converted into local currency. This combination has squeezed profit margins and left exporters with fewer options to absorb growing costs. Industry experts warn that without government intervention, many exporters could struggle to remain competitive in international markets. Climate Change Shrinks Mango Production While trade disruptions dominate headlines, deeper structural problems continue to threaten the future of Pakistan’s mango industry. Climate change, unpredictable weather patterns, and increasing vulnerability to diseases have steadily reduced mango production over the past several years. Industry estimates suggest that this year’s mango crop could be around 20 percent below Pakistan’s average annual production of 1.9 million tons. Lower yields not only affect export volumes but also raise concerns about the long-term sustainability of mango farming across major producing regions. Can Pakistan Mango Exports Recover? Despite the difficult outlook, exporters remain determined to protect Pakistan’s position in global markets. Industry leaders believe the country still possesses significant untapped export potential if quality standards improve and growers receive better technical support. PFVA has called on the government to increase investment in agricultural research, modern orchard management, disease control programs, and export facilitation measures. Officials have also been urged to address shipping delays, improve port operations, and strengthen diplomatic engagement with Gulf buyers to minimize disruptions caused by the regional crisis. Without immediate action, industry stakeholders warn that even the revised export target of 80,000 tons may prove difficult to achieve. A Defining Season for Pakistan’s Mango Industry This year’s export season could become a defining moment for Pakistan Mango Exports. The industry is facing a perfect storm of geopolitical uncertainty, soaring logistics costs, climate-related production losses, and shrinking profit margins. How policymakers, exporters, and growers respond in the coming months may determine whether Pakistan can protect its global market share or risk losing ground to competing mango-producing countries in an increasingly competitive international marketplace.

Tribunal Upholds CCP Order of 30M Fine Against Reckitt Benckiser Over Strepsils Deceptive Marketing
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Tribunal Upholds CCP Order of 30M Fine Against Reckitt Benckiser Over Strepsils Deceptive Marketing

ISLAMABAD: The Competition Appellate Tribunal (CAT) has decided an appeal filed by Reckitt Benckiser Pakistan Limited against an order of the Competition Commission of Pakistan (CCP) dated February 9, 2021, concerning the deceptive marketing of its product, Strepsils. The Tribunal upheld the Commission’s finding that Reckitt Benckiser had violated Section 10(2)(b) of the Competition Act, 2010 by disseminating misleading information to consumers regarding the nature and character of the product. The Tribunal directed the company to pay a penalty of Rs. 30 million and to strictly comply with the corrective measures prescribed by the Commission. The Tribunal further directed that compliance with the Commission’s instructions be ensured within the stipulated period. The case arose from a complaint filed by M/s Square Distribution & Marketing System (Pvt.) Limited, alleging that Reckitt Benckiser had been creating the impression through its marketing and advertising that Strepsils was a medicinal product for sore throat relief, despite its deregistration as a drug and subsequent marketing as a non-medicated product. At present, the product is registered as a food item. In its judgment, the Tribunal noted that the company had substantially altered its product packaging and disclosures following the Commission’s proceedings. The Tribunal observed that Strepsils packaging had undergone material changes, including the prominent display of the words “Non-Medicated” in both English and Urdu on the front of the packaging and blister packs, whereas previously such disclosure was less conspicuous. The Tribunal observed that these modifications reflected acceptance of the need for corrective measures and acknowledged that the company had made significant changes to its packaging and marketing practices following the Commission’s intervention. As part of the Commission’s directions, Reckitt Benckiser has also been required to prominently publicize the change in the status of the product from a medicated/drug category to a food category through advertisements in at least three widely circulated English and Urdu newspapers across Pakistan. Such notices are required to be published on a weekly basis until full compliance is achieved. The CCP remains committed to protecting consumers from deceptive marketing practices and ensuring that businesses provide accurate, clear, and truthful information regarding their products and services. The decision reinforces the importance of transparency in advertising and affirms consumers’ right to make informed purchasing decisions based on correct information.

Islamic Money Market Turnover Hits Rs142.6 Billion
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Islamic Money Market Turnover Hits Rs142.6 Billion

KARACHI: The Islamic money market in Pakistan recorded a significant turnover of Rs142.6 billion on May 25, 2026. This reflects robust activity in Shariah-compliant instruments amid the expanding Islamic banking sector. Market Breakdown and Key Transactions Interbank and non-bank segments led the activity with Rs72.4 billion in Mudaraba and Musharaka deals. These spanned one-week to one-month tenors at weighted average returns of 11.25% to 11.30%.Islamic banking channels showed strong internal liquidity flows. Transactions between Islamic banks and Islamic branches of conventional banks reached Rs38.4 billion, mostly through one-week Musharaka at 11.50%. Expert Insights and Future Outlook Experts view this as a positive sign for the evolving Islamic interbank market. It reduces reliance on conventional tools while preparing for the 2027 interest-free transition deadline.Musharaka contracts dominated at 11.5%, highlighting banks’ preference for profit-sharing models in short-term liquidity management. The data underscores growing institutional participation from mutual funds, insurance companies, and development finance institutions. This broad base strengthens the market’s depth and resilience.No transactions occurred between Islamic entities and purely conventional banks during the period. This shows a clear shift toward dedicated Shariah-compliant channels. Industry projections remain optimistic. Islamic banking assets are expected to reach Rs18-19 trillion by December 2026, up from Rs14.47 trillion. Deposits could hit Rs13.5-14.5 trillion while financing portfolio expands to Rs7-7.8 trillion. This momentum positions Islamic banking to capture 25-27% of total banking assets by year-end. The branch network is also set to grow significantly. Such activity plays a vital role in liquidity management without interest-based instruments. It supports the sector’s sustainable growth trajectory in Pakistan’s financial landscape.

Pakistan’s iTANZ Secures $45 Million Tech Deals with Chinese Firms
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Pakistan’s iTANZ Secures $45 Million Tech Deals with Chinese Firms

Pakistan’s iTANZ Technologies Limited has signed Memorandums of Understanding (MoUs) worth around $45 million with three leading Chinese technology companies. The deals focus on artificial intelligence, robotics, digital platforms, and offshore software services. This development occurred during Prime Minister Shehbaz Sharif’s recent visit to China. Strategic MoUs Signed in Hangzhou iTANZ CEO Syed Asim Zafar represented the company in high-level B2B meetings in Hangzhou.The Pakistani delegation accompanied the Prime Minister to strengthen economic and strategic ties with China. MoUs were signed with Zhejiang Xiangyue Group, Suzhou Xuqing Intelligent Technology Co., Ltd., and Shanghai Shuhai ZhiLian Digital Technology Co., Ltd. These agreements cover technology transfer, joint market development, and digital transformation initiatives. iTANZ Technologies, listed on the Pakistan Stock Exchange, was formerly known as Zahur Cotton Mills Limited. It transitioned into IT after merging with ITANZ Technology Private Limited in 2025.The company now specializes in software development, IT services, and consultancy. Boost for Pakistan’s Digital Economy The $45 million (approximately Rs12.5 billion) indicative value highlights significant future opportunities. However, the actual realization depends on final agreements, due diligence, and regulatory approvals.This partnership aligns with broader Pakistan-China cooperation under frameworks like CPEC. Experts see it as a major step toward modernizing Pakistan’s technology sector. The deals aim to bring advanced AI and robotics capabilities to local markets. iTANZ plans to expand offshore software services and digital platform solutions. Analysts believe this will create new jobs and skill development opportunities in Pakistan. China remains a key partner for technology transfer and investment in the region. The visit to China also focused on wider economic collaboration between the two countries.iTANZ’s inclusion in the official delegation underscores government support for IT exports.Pakistan’s IT sector has shown steady growth in recent years. Such partnerships could accelerate this momentum significantly. The company expressed confidence in converting these MoUs into concrete projects soon.

Pakistan Govt Eyes 20% Windfall Tax on Oil Sector Rs130 Billion Profits During War Time
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Pakistan Govt Eyes 20% Windfall Tax on Oil Sector Rs130 Billion Profits During War Time

The Pakistani government is actively considering imposing a 20% windfall gain tax on oil sector companies that earned substantial profits following sharp increases in global fuel prices triggered by recent international conflicts. Authorities estimate that oil marketing companies and refineries collectively benefited from billions of rupees in additional profits after fuel prices surged domestically. Committee Formed to Review Recovery Mechanism Prime Minister Shehbaz Sharif has constituted a high-level committee headed by Finance Minister Muhammad Aurangzeb to examine ways of recovering an estimated Rs72 billion from oil marketing companies. Alongside the windfall tax issue, the committee has also been tasked with addressing salary concerns of foreign-qualified professors working under the Tenure Track System, whose pay has remained frozen since 2021 despite rising inflation. The panel is expected to review broader fiscal and policy matters linked to the upcoming federal budget and economic reforms. Petroleum Division Opposes Immediate Recovery The Petroleum Division has expressed reservations regarding immediate recovery of windfall gains from oil companies. Officials argue that the firms should first be compensated for inventory losses before any tax or recovery mechanism is implemented. They also believe the government should wait until global oil markets stabilize following the ongoing geopolitical crisis. Shortly after the conflict began, the government increased petrol and diesel prices by Rs55 per litre. This move reportedly generated around Rs130 billion in combined profits for refineries and oil marketing companies. According to tax authorities, a 20% windfall gain tax could potentially be imposed through a Statutory Regulatory Order (SRO), eliminating the need for fresh legislation. The tax would likely be applied once companies finalize their accounts for the current fiscal year. Another proposal under consideration involves passing recovered funds directly to consumers through reduced fuel prices in the future. Committee Reviews Wider Budget Priorities Although the committee recently held its first meeting, detailed discussions on the recovery mechanism were postponed. Senior officials indicated that any final decision would only be taken after the current crisis subsides. Beyond the oil sector, the committee is reviewing several major budget priorities for fiscal year 2026-27. These include cross-subsidies, public sector development spending, pending international litigation, and proposals allowing revenue-generating divisions to retain a portion of their collections. Finance Minister Aurangzeb’s committee will also evaluate tax reform proposals submitted by the Tax Policy Office, including performance-based funding models for government ministries and institutions. Salary Concerns in the Education Sector A significant part of the committee’s work also focuses on addressing compensation issues faced by highly qualified university professors under the Tenure Track System. These academics last received salary increases in 2021, while inflation and taxation have risen sharply since then. Officials noted that inflation has increased by nearly 87%, while the tax burden on this category has risen by approximately 81%, creating financial stress for many professionals in higher education. Industry and Consumer Concerns Representatives of the oil sector argue that sudden taxation measures could discourage future investment in Pakistan’s refining and fuel marketing infrastructure. Industry stakeholders warn that unpredictable fiscal policies may affect long-term sector expansion and modernization efforts. At the same time, consumers continue to face elevated fuel prices, which have contributed significantly to broader inflationary pressures across the country. Adding to concerns, the government is also expected to double the Climate Support Levy on fuel from July as part of its commitments under the IMF programme. Conclusion The government’s final decision on imposing a windfall gain tax will likely attempt to balance immediate revenue requirements with the long-term stability of Pakistan’s energy sector. The recommendations of the Finance Minister-led committee are expected to play an important role in shaping key fiscal and taxation policies in the federal budget for 2026-27.

Eidul Azha Generated Pakistan’s Half-Trillion-Rupee Informal Economy
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Eidul Azha Generated Pakistan’s Half-Trillion-Rupee Informal Economy

Karachi’s livestock markets begin buzzing with activity weeks before Eid al-Adha as traders bring cattle from Sindh, goats from Balochistan, and camels from various regions of the country. Beyond its religious significance, the annual qurbani ritual has evolved into one of Pakistan’s largest informal economic events. Every year, millions of Pakistanis participate in qurbani during the three days of Eidul Azha. Estimates suggest nearly 7.4 million animals are sacrificed nationwide, generating economic activity worth between Rs539 billion and Rs752 billion. According to analysis by Ammar H Khan, the base estimate stands at approximately Rs641 billion. This enormous private spending is equivalent to more than half of Pakistan’s annual federal development budget, despite operating entirely without formal government coordination. The system runs through religious obligation, household spending, and traditional market networks. The economic impact becomes visible in data from the State Bank of Pakistan, which shows a sharp increase in currency circulation before Eid as cash transactions surge for animal purchases, transportation, fodder, and related services. The livestock supply chain supports thousands of livelihoods. Farmers spend months raising animals using local fodder before traders transport them to urban cattle markets. Butchers, transporters, hide collectors, and mandi workers also earn significant income during the season. An average cow sells for around Rs110,000, with farmers retaining nearly 55 to 65 percent of the proceeds after expenses. Analysts estimate that roughly Rs420 billion flows into rural households within a single week, creating a major rural-to-urban economic transfer. Karachi alone reportedly spent around Rs185 billion on sacrificial animals in 2025, with more than two million animals traded in the city. Shared qurbani arrangements, where multiple families jointly purchase larger animals, also help middle-class households participate despite rising costs. Beyond commerce, Eidul Azha also functions as a large-scale private food distribution system. Around 532,000 tonnes of meat are distributed during the festival, with nearly one-third traditionally shared with underprivileged families and communities. Experts note that this level of private redistribution often exceeds the scale of many government-led food support programs. The annual event also highlights the size and importance of Pakistan’s informal economy, as many butchers, traders, transporters, and temporary workers earn a substantial portion of their yearly income during the Eid season. Despite its scale, much of this economic activity remains outside official statistics and formal documentation.

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